ESTIMATING ENDING MERCHANDISE INVENTORY

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Presentation transcript:

ESTIMATING ENDING MERCHANDISE INVENTORY 1 1. List beginning inventory. 2 2. Determine net purchases. 3 3. Calculate merchandise for sale. 4 4. Determine net sales. 5 5. Calculate estimated gross profit. 6 6. Calculate the estimated cost of merchandise sold. 7 7. Calculate estimated ending inventory. Lesson 4-1, page 97

INTERIM DEPARTIMENTAL STATEMENT OF GROSS PROFIT Lesson 4-1, page 98

COST OF MERCHANDISE SOLD AND GROSS PROFIT PERCENTAGES 1 2 1. The cost of merchandise sold percentage: 2. The gross profit percentage: $38,186.47 $69,429.95 .5499 or 55% = $31,243.48 $69,429.95 .45 or 45% = Lesson 4-1, page 99

TERMS REVIEW fiscal period departmental statement of gross profit interim departmental statement of gross profit periodic inventory perpetual inventory gross profit method of estimating inventory component percentage Lesson 4-1, page 100